Vic recycling infrastructure strained: SKM

Fire crews at the scene of a huge blaze at Coolaroo Recycling Centre in Melbourne.

A Melbourne recycling business says a fire at one of its plants that has been burning for days has brought on a much bigger infrastructure issue.

The SKM recycling plant in Coolaroo has been burning since Thursday, forcing the evacuation of residents because of the toxic smoke.

In a statement obtained by News Corp on Monday, plant manager Robert Italiano said the company was sorry for the impact on neighbours and was working with authorities.

However, he also said recycling infrastructure was strained.

"Rubbish bins are now smaller, recycling bins are bigger and we seem to be one of only a few investing in the necessary infrastructure to manage the state's growing recycling demands," he said.

"That's why we find ourselves where we are today."

The statement comes as Victoria's Environment Protection Authority found air quality levels in the vicinity of the fire had returned to normal.

"Any poor air quality in the area has been attributed to morning traffic, not the fire at the recycling plant in Coolaroo," the EPA said on Monday.

The EPA will continue to monitor air quality around schools in the area.

Firefighters have brought the toxic blaze at the SKM recycling plant under control but expect the fire to burn for several more days as bails of compacted recyclables, including plastic and cardboard, continue to smoulder.

The Victorian government announced at the weekend that a taskforce will audit the state's recycling facilities.